 Thank you, welcome back everybody. Jeff Rick here with theCUBE. We are live in downtown San Francisco, Pure 48 G mines and machines. Pretty much everybody who's anybody at GE and their customers and partners are here talking about the industrial internet, G digital and really the transformation as they start to bring software into the industrial world and really transform it like it's happening consumer in a lot of other places. We're joined here by our next guest coming right off his panel, Jeff Lew, the global executive sponsor GE Industrial Internal Alliance for Ernest and Young. I'm not Ernest and Young anymore, right? EY now, the short and sweet, makes a better hashtag. So Jeff, welcome. Thank you, it's great to be here. My second year here is part of the partnership and it's very exciting to see this thing expand like all the other big partner and user conferences that we know historically. But this one, interesting, Jeff Emelton, the keynote saying that GE wants to be one of the top 10 software companies in the world. I don't know that I had heard that before. I know I think they have a shot to do it. We were talking, we both spent quite a bit of time in the enterprise space and I think the operational technology, the OT space, very different from enterprise. It's going to take some incumbents that really have the kind of nuts and bolts and greasy hand understanding of the manufacturing floor or the oil rig to be the software leaders. This isn't just deploying ERP or data center virtualization. Right, but then you also really have to have the visionary to see the opportunity to apply this transformation on softwares eating the world to physical stuff, real stuff. It's going to be disruptive one way. I try to think about it as someone who played around quite a bit in the client server days with clients all over the valley. That was four trillion in value over 25 years created in the market for millions of servers and clients being connected. Here we're talking billions of machines and sensors getting connected. And I think it's going to be a proportion of explosion and value creation. And it's really figuring out how to take that technology, bring it together with process and change at the manufacturing or equipment level. Yeah, so your panel was all about change in business models. It's interesting that the three sexy words keep getting thrown around here. No one's scheduled downtime. But that's really just the tip of the iceberg. Once you start to get this data and have software and analytics pushed down, and you should see this in the IT space, pushed down to more people, there's much bigger transformational opportunities out there than just no scheduled downtime. Yeah, it's a little bit stereotypical now to talk about Uber or Airbnb as kind of paradigms of what happened in consumer. But I'm going to repeat those because there's a real analogy. We went in tech on the enterprise level from client server automation to SaaS to now actual services from innovative companies like that. For IIoT, it's certainly not just about conditional maintenance or no one's scheduled downtime. One of the really interesting things we're doing with GE right now is at a very large global chemical company where there's an industrial process that we're able to say to them, look, over a 10-year period, we're going to guarantee you a certain amount of output and a certain amount of revenue. That begins to look like a sequence of cash flows which looks something like a derivative almost. We can guarantee that financial outcome for them and not really even have them worry about what's going on in the actual equipment or the manufacturing process itself. And that's very much like abstracting the value away from the shared asset or the asset just like you saw in the consumer world. And the example that gets thrown around that I've heard many times say the case of GE instead of selling an engine, you're selling propulsion and who's in a better position to maximize the propulsion return on that asset than the people that make it, monitor it, have the sum total data of all the engines into play. How far away is that? Well, I think it's actually just a matter of defining these new business models because you definitely need, like you're saying, a player who understands the engine, understands all the protocols around operating it and those incumbents exist. GE is probably one of the leaders there and it's really the software and the technology is there as well. Now it's really organizational change and business model change and just plain old selling that gets a real industry paradigm to shift all of a sudden. So we're saying that. Yeah, we work a lot in terms of, I'll say this, every chief executive and chief financial officer that we speak to in our global client base absolutely wants to understand what industrial IoT is going to do to disrupt their business or to enable better growth or profitability. And it's really, I think, incumbent on partners like us to help GE translate that into a business objective, help them create the models like outcome guarantees versus conditional maintenance in the factory sense, a performance guarantee, help them sell and package that to the big clients that we jointly have. We talk all the time, we cover a lot of shows. It's tech, process, and people. And the tech's really the easiest part of the tree, right? It's the people and the process of that is hard to transform. It's a very open source world. You've got plenty of partners, including ourselves that are innovating on the application side. The cloud stack could not be more efficient or cheaper connectivity's there. Now it's really about making the shift happen at the business level. And the good news is globally, and I've been in Asia, India, Europe, South America, and certainly all around the US, not a single manufacturing or industrial client that doesn't want to become more digital in terms of how they operate. So let's talk specifically about your panel. What were some of the nuggets that came out for the folks that weren't able to attend? Any surprises? Any good headbutting going on? Hopefully a little bit. I would say fairly good alignment and maybe the only thing is some disagreements on how quickly the market will change this way. It's interesting for someone who's a consultant and GE obviously is a provider of equipment when you actually talk to some operators and there were some executives of actual manufacturing companies. One thing we forget about is safety actually is a huge, huge element of this. And when you get that type of productivity and data around a process, you actually enhance both sustainability from an energy concept and safety from an operating concept. So some real good dividends to actual the manufacturing people and manufacturing companies out there coming out of this as well. And is that a good entry point? Is that kind of a good place to start or is that just always baked into everything you just did? What we're finding is the thing that attracts the C level attention the most is that proposition that you can actually have a pretty firm guarantee around outcome, whether it's a KPI, whether it's a dollar number. After that, things like sustainability, good energy management, safety are just enhancers of why this is a no-brainer. Again, the solutions actually have pretty fast ROI and if they can do things like really increase safety, increase health, increase green sustainability, it becomes a no-brainer. Yeah, second order impacts are always the fun ones, the surprises that, like wow. All right, Jeff, well, before we let you go, next year when we come back here, what are we going to be talking about? What do you see kind of happening next 12 months? I never want to say five years, that's like forever. No, no. But next year and kind of short term things you see happening. My next two to four quarter objectives are, we think there are some very large referenceable companies that are going to be the industry catalyst, whether that's in oil and gas, chemicals, metals, consumer products and I think next year, GE and we will have some great testimonials as the pioneers for how to adopt this. And then second, I think the other thing we'll be able to say next year is it's not just happening in the Western world or more developed countries, I think you'll see a lot of activity in Asia, Southeast Asia and India. It's amazing to think that Bill and the team only launched predicts earlier this calendar year, right? Yeah, yeah, yeah, yeah, Bill's been great. We signed up as a strategic partner, I think we were one of the first and we really enjoyed the relationship with GE. Well, good bet and we know you guys don't make bets unless you feel like it's a good bet. Try not to, try not to. Very good. Well, Jeff, thank you for taking a minute out of your day. You're welcome, thanks a lot. All right, he's Jeff Lew. I'm Jeff Frick, a lot of Jeffs. You're watching theCUBE from GE Minds and Machines 2016, downtown San Francisco. Thanks for watching.